Methodological framework for stress-testing IORPs

Stress testing frameworks have evolved considerably over the last few years and have become an increasingly important risk management instrument for the financial sector. Stress tests (STs) form an integral part of the financial risk management of individual institutions and have become a core tool for supervisors to identify and assess risks and vulnerabilities in the financial system. STs can provide additional insights and a forward-looking perspective on the risk and vulnerabilities of Institution for Occupational Retirement Provision (IORPs) that cannot be derived from the regular supervisory reporting.